Corn futures are a penny to 2 cents higher at midmorning.
- Nearby corn futures are modestly firmer amid general strength across the ag complex, as crude firms and the U.S. dollar resumes its recent decline.
- U.S. rainfall into next week will be greatest from eastern Texas through southeastern Kansas, Arkansas and the heart of Missouri to Indiana and Ohio, according to World Weather Inc. Planting delays are expected to continue in saturated areas of the Ohio, Tennessee and Mississippi river basins.
- Ethanol production averaged 1.012 million barrels per day (bpd) during the week ended April 11, down 9,000 bpd from the previous week but up 29,000 bpd (3.0%) from the same week last year. Ethanol stocks declined 220,000 barrels to 26.814 million barrels.
- May corn futures are holding an inside range, with resistance standing at $4.87, while support is layered at the 10-, 40-, 100- and 20-day moving averages in the $4.75 to $4.66 1/2 range.
Soybeans are 1 to 3 cents higher, while soymeal futures are $1.50 to $2.00 higher. Soyoil is trading modestly firmer.
- Soybean futures are edging higher amid improving trade sentiments, though technical resistance continues to limit momentum.
- China has indicated it will agree to trade talks if the Trump administration shows more respect and a willingness to address Beijing’s concerns around American sanctions and Taiwan, according to Bloomberg. Beijing also wants the U.S. to appoint a point person for talks who has the president’s support and can help prepare a deal that Trump and Chinese leader Xi Jinping can sign when they meet.
- Pakistan will offer to buy more soybeans and cotton from the U.S. as it looks to escape Trump’s tariffs, people with knowledge of the situation told Bloomberg. Pakistan wants to reduce this surplus to below $2 billion from about $4 billion in the year ended in June.
- May soybeans are pivoting around the 200-day moving average, currently trading at $10.41 1/2. Support lies at the 100-, 10- and 20-day moving averages, layered from 10.25 1/2 to 10.16.
Wheat futures are mostly 2 to 4 cents higher.
- Wheat futures are favoring the upside but continue to consolidate in a sideways pattern.
- World Weather says rains forecast for the Plains appears to be a bit meager for the first week of the outlook, though rainfall in the second week may be greater.
- Recent cold weather and heavy hailstorms slightly decrease Russia’s wheat production potential to 79.5 MMT, including 54.1 MMT of winter wheat and 25.4 MMT of spring wheat, according to LSEG Commodities Research & Forecast. The past two weeks featured cold weather conditions with snow precipitation, causing some localized cold damage. Soil moisture levels have improved in Volga, Siberian and North Caucasian Districts, but heavy hailstorms in Krasnodar and Stavropol may have caused some damage to the already emerged crops.
- May SRW futures are being supported by the 10- and 20-day moving averages, each trading around $5.41 1/2, while the 40-day moving average of $5.53 1/2 remains resistance.
Live cattle and feeders are sharply higher at midmorning.
- Nearby live cattle are higher for the fourth straight session as traders narrow discounts to the cash market.
- Wholesale beef prices declined 20 cents for Choice to $335.43 and 61 cents for Select to $315.24 on Tuesday. Movement totaled 147 loads, signaling strong underlying retailer demand. Beef movement has picked up recently as retailers gear up for the end of Lent and start of the grilling season.
- Packers entered this week with extremely short inventories, but the Good Friday holiday this week will make the week short for slaughter volumes and compress trading.
- June live cattle have moved above the 20-day moving average of $201.22, with additional resistance at $201.975. Yesterday’s close of $199.80 is support.
Hog futures are posting strong gains at midsession.
- Nearby lean hogs are sharply higher despite persisting cash weakness.
- The CME lean hog index is down another 63 cents to $85.37 as of April 14, marking losses for the tenth straight day.
- The pork cutout value slid $1.05 to $91.72 on Tuesday, led by a $6-drop in primal bellies. Movement totaled 339.1 loads.
- China’s pork output rose 1.2% from year-ago in the first quarter to 16.02 MMT. A total of 194.76 million hogs were slaughtered from January to March, a 0.1% increase from the same period last year. Typically, pork output rises in the first quarter due to increased hog slaughter ahead of the Lunar New Year holiday.
- June lean hogs have extended above the 40- and 200-day moving averages and are now facing resistance at $97.72. Initial support lies at the 20-day moving average of $94.80.